Romania will keep the flat tax and VAT unchanged this year, says the PM

Newsroom 22/03/2011 | 10:48

The Romanian government will keep the flat tax and VAT at their current level this year, and will consider changing these taxes only further in the future, Prime Minister Emil Boc said on Monday, according to Mediafax newswire.

“As agreed with the European Commission and the international Monetary Fund, today we have macroeconomic stability. Presently, the state budget is designed on a flat tax of 16 percent and a VAT of 24 percent and these levels will be kept in 2011. We will see in the future what we will do,” said the PM

Democratic Liberal Party vice-president Adriean Videanu said recently that the ruling coalition will discuss an economic measure package that may include reducing the flat tax and simplifying fiscality.

A similar position was expressed by Andreea Paul-Vass , adviser to the PM, last month when she said that among the government’s fiscal priorities this year there is reducing the social contributions, and on the long run, cutting the VAT and also reducing the flat tax. She explained at that time that there is a “high probability” that the social contributions cut will take place during the second semester of 2011.

Simona Bazavan